Solenis releases price talk on $1.4 billion equivalent term loan

By Sara Rosenberg

New York, Sept. 9 – Solenis came out with price talk on its $1.4 billion equivalent U.S. and euro seven-year term loan B (B2/B-) with its lender call on Thursday, according to a market source.

The U.S. term loan is talked at Libor plus 400 basis points with a 0.5% Libor floor and an original issue discount of 99, and the euro term loan is talked at Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said.

Both term loans have 101 soft call protection for six months.

The U.S. term loan has amortization of 1% per annum.

Goldman Sachs, BofA Securities Inc., Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Nomura, HSBC, ING, Jefferies LLC, Macquarie and RBC Capital Markets are the lead arrangers on the deal.

Commitments are due at 10 a.m. ET on Sept. 21, the source added.

Proceeds will be used with $1.4 billion equivalent U.S. and euro senior secured notes and $1 billion equivalent U.S. and euro senior notes to help fund the buyout of Solenis by Platinum Equity and merger with Sigura Water, an existing Platinum Equity portfolio company.

Solenis is being bought from Clayton, Dubilier & Rice and BASF in a transaction with an implied enterprise value of $5.25 billion. Including the merger with Sigura, the total combined transaction value is about $6.5 billion.

Closing is expected before the end of the year, subject to regulatory approval and customary conditions.

Solenis is a Wilmington, Del.-based producer of specialty chemicals used in water-intensive industries. Sigura is an Alpharetta, Ga.-based provider of water treatment solutions.

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